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Roxgold Reports 2019 Third Quarter Production Results

TORONTO--(BUSINESS WIRE)--

Roxgold Inc. (“Roxgold” or the “Company”) (ROXG.TO) (ROGFF) is pleased to report its 2019 third quarter (“Q3”) and first nine month ended September 30, 2019 (“YTD 2019”) production results from the Company’s Yaramoko Gold Mine located in Burkina Faso (“Yaramoko”).

Highlights:

  • Produced 33,036 ounces of gold in Q3 for a total of 101,041 ounces YTD 2019
  • Realized a record quarterly plant throughput of 114,036 tonnes which exceeded increased nameplate capacity of 1,100 tonnes per day (“tpd”) by approximately 13%
  • Commercial production achieved at Bagassi South in September 2019
  • Cash balance has increased to $29 million at the end of September 2019

John Dorward, President and CEO commented, “We continue to see solid operating performance at Yaramoko with gold production of 101,041 ounces through the first nine months of 2019 driven by consistent outperformance at our processing plant where we achieved record throughput and operated approximately 13% above nameplate capacity in Q3. Over the course of Q3, Roxgold reached a cash inflection point with cash added to the balance sheet following the investment in Bagassi South and the acquisition of our first growth project, Séguéla, earlier in the year. During September, we also achieved commercial production at Bagassi South, our second high grade gold mine at Yaramoko. Increased stoping activity at Bagassi South and higher mined grades are expected to drive a strong fourth quarter of operations with forecast production at the low end of our 2019 guidance.”

Operating Summary:

At the 55 Zone, 90,311 tonnes of ore were mined at 9.25 grams per tonne (“g/t Au”) and 1,484 metres (“m”) of development were completed. During the quarter, approximately 76% of ore mined came from stoping activities with five open stopes available at the end of the quarter. During the quarter, decline development reached the 4811 level, approximately 511 metres below surface.

At Bagassi South, commercial production was achieved in September. During the quarter, 41,055 tonnes of ore were mined and 1,679 m of development were completed at Bagassi South. Yaramoko is expected to produce a strong Q4 due to increased stoping operations mining higher grade ore at Bagassi South with forecast production at the low end of our 2019 guidance.

The plant processed a record 114,036 tonnes at an average head grade of 9.1 g/t Au for the quarter. Plant availability was 93.2% and overall recovery remained high at 98.0%. The plant throughput rate has consistently exceeded the nameplate capacity of 1,100 tpd following the completion of the Bagassi South expansion resulting in throughput rates exceeding nameplate capacity by approximately 13% during Q3.

Yaramoko Production Metrics

 

Q3 2019

Q2 2019

Q1 2019

Q4 2018

Q3 2018

Total Development (metres)

3,163

2,926

2,264

1,785

1,479

Ore mined (tonnes)

131,366

109,840

98,140

88,277

87,975

Ore processed (tonnes)

114,036

113,866

106,816

82,241

78,357

Head grade (g/t)

9.1

9.0

10.0

10.8

12.3

Recovery (%)

98.0

98.2

98.3

98.2

98.5

Gold ounces produced

33,036

34,354

33,652

25,844

30,532

Upcoming Catalysts

Q4 – Further exploration results from Séguéla
Q4 - Yaramoko regional exploration results
Q4 - Results of Séguéla Preliminary Economic Assessment (“PEA”)

2019 Third Quarter Financial Results and Conference Call

The Company will release its 2019 third quarter financial results after market hours on Tuesday, November 12, 2019.

A webcast and conference call to discuss these results will be held on Wednesday, November 13, 2019, at 8:00AM Eastern time. Listeners may access a live webcast of the conference call from the events section of the Company’s website at www.roxgold.com or by dialing toll free 1-844-607-4367 within North America or 1-825-312-2266 from international locations and entering passcode 5083935.

An online archive of the webcast will be available by accessing the Company’s website at www.roxgold.com. A telephone replay will be available for two weeks after the call by dialing toll free 1-800-585-8367 and entering passcode 5083935.

Qualified Persons

Paul Criddle, FAusIMM, Chief Development Officer for Roxgold Inc., a Qualified Person within the meaning of National Instrument 43-101, has reviewed, verified and approved the scientific and technical disclosure contained in this news release.

About Roxgold

Roxgold is a Canadian-based gold mining company with assets located in West Africa. The Company owns and operates the high-grade Yaramoko Gold Mine located on the Houndé greenstone belt in Burkina Faso and is also advancing the development and exploration of the Séguéla Gold Project located in Côte d’Ivoire. Roxgold trades on the TSX under the symbol ROXG and as ROGFF on OTCQX.

This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws (“forward-looking statements”). Such forward-looking statements include, without limitation: statements with respect to future production estimates, production guidance, anticipated recovery grades, and potential increases in throughput, exploration and development plans, and the expected timing thereof. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of Mineral Resources and Mineral Reserves, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Yaramoko Gold Project in the short and long-term, the progress of exploration and development activities as currently proposed and anticipated, the receipt of necessary regulatory approvals and permits, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters, as well as assumptions set forth in the Company’s technical report dated December 20, 2017, and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” available on the Company’s website at www.roxgold.com and SEDAR at www.sedar.com. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: changes in market conditions, unsuccessful exploration results, possibility of project cost overruns or unanticipated costs and expenses, changes in the costs and timing of the development of new deposits, inaccurate reserve and resource estimates, changes in the price of gold, unanticipated changes in key management personnel, failure to obtain permits as anticipated or at all, failure of exploration and/or development activities to progress as currently anticipated or at all, general economic conditions and other risk factors contained in the Company’s annual information form and other disclosure documents available on SEDAR. Mining exploration and development is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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